NEW YORK, May 24, 2023 (GLOBE NEWSWIRE) — Kaplan Fox & Kilsheimer LLP reminds investors that a complaint has been filed on behalf of purchasers of The Walt Disney Company (“Disney” or the “Company”) common stock (NYSE: DIS) between December 10, 2020 and November 8, 2022, inclusive (the “Class Period”). Click Here to Join Investigation.
If you acquired Disney common stock during the Class Period and would like to discuss this case, please click here. You may also contact us by emailing email@example.com or calling (646) 315-9003.
If you are a member of the proposed Class, you may move the court no later than July 11, 2023 to serve as a lead plaintiff for the purported class. If you have losses, we encourage you to contact us to learn more about the lead plaintiff process.
The complaint alleges that in 2019 prior to the Class Period, the Company was reorganized around Disney+, a streaming service offered in Disney’s direct-to-consumer (“DTC”) segment.
According to the complaint, during the Class Period, Disney and the other defendants repeatedly misled investors about the success of the Disney+ platform by concealing the true costs of the platform, concealing the expense and difficulty of maintaining robust Disney+ subscriber growth, and claiming that the platform was on track to achieve profitability and 230-260 million paid global subscribers by the end of fiscal year 2024. Defendants allegedly made these representations notwithstanding the fact that initial subscriber numbers for Disney+ had been boosted temporarily and unsustainably by a low launch price of $6.99 per month, a bevy of additional short-term, low-cost promotions, and a near-captive audience of consumers who were homebound due to COVID-19 restrictions. As a result, the consumers most likely to subscribe to Disney+ had already done so by the start of the Class Period. Furthermore, the complaint alleges that Disney was suffering staggering costs in creating the content needed to attract such a large number of subscribers in the highly competitive streaming wars that were then raging among Disney’s many competitors. According to the complaint, in truth, during the Class Period, Disney+ was never on track to achieve the 2024 profitability and subscriber figures provided to investors and such estimates lacked a reasonable basis in fact.
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